Default on Housing Credit: Banks had 690 properties in their portfolio

Despite official data revealing that there are fewer houses being foreclosed on by banks, the truth is that in the second quarter of the year, the latest official data, banks still had 690 homes in foreclosure.

These data, advanced by Confidencial Imobiliário, the company that monitors the information provided by the main banks operating in Portugal, shows that despite the increase in monthy house loans, families have resisted handing over their homes to the bank.

Still, between April and June 2023, 101 properties were handed over to banks due to non-compliance with housing loans, while in the same period but in 2013, 1083 properties were available to be acquired by other people, which corresponds to a decrease of 90.6%.

Source: Jornal Expresso

Advantages of investing in foreclosed properties

Buying a foreclosed house can bring you numerous advantages, namely buy a property below market value and still get 100% financing. In addition to these advantages, there is also the possibility of obtaining a bank loan more easily.

This happens because banks have every interest in selling these properties as quickly as possible in order to not only recover their capital but also eliminate the costs they incur with them.

Disadvantages of buying a house under foreclosure

Although the advantages are very attractive for those looking for an opportunity to invest in the real estate market, there are also some disadvantages that you should take into account, namely the state of conservation of the property which is not always delivered to the bank in the best conditions or that, over time, ended up deteriorating or being vandalized. In these cases, you should consider that you will have to spend some money on repairs.

Also the impossibility of visiting the interior of the property can become a block to sales. There are many entities that do not allow visits to the interior of the house, and the exterior may leave you with the wrong idea of what you will find inside the doors.

Another thing you should bear in mind is the fact that some properties are seized by different entities. If you want to buy a foreclosed house, make sure you are not purchasing just one part of it.

Last but not least, you should also be alert to condominium debts. This is because when purchasing a foreclosed property, old condominium debts will be charged to you.

Where to find foreclosed properties for sale

If, after this introduction we gave you, you still have the idea of investing in a foreclosed property, we leave you with a list of some portals where you can find the respective property portfolio:

If you're looking to invest in the real estate market but need a mortgage to purchase the house, contact us!

Go Crédito

GO Crédito is a company specialized in credit intermediation, authorized and supervised by the Bank of Portugal. We provide credit intermediation and consultancy services quickly and effectively.